Michigan quitclaim deed

Michigan Compiled Laws 565.8 requires a conveyance of land to be signed by the grantor and acknowledged before a notary. No witnesses are required. The notary certificate must be complete, and the grantor's name must match the name on the current deed.

Citation: Mich. Comp. Laws § 565.8 (opens the official source in a new tab).

A deed signed in another state can be acknowledged under Michigan law or the law of the place where it was signed, but the register may reject a certificate that does not include the required information. When in doubt, sign in Michigan before a Michigan notary.

The register of deeds will check that the deed has a legal description, the names of the parties, a return address and, in many counties, a statement of who prepared the document. Michigan also requires the deed to identify the property tax parcel or give enough information for the register to index it.

Record the original deed and pay the recording fee. The register returns a copy with the recording information. Keep that copy with the title papers and give a copy to the grantee. Do not record a photocopy of a signature page in place of the signed original.

Michigan charges a state real estate transfer tax of $3.75 for each $500 of the price, and a county tax of $0.55 for each $500 in most counties. The tax is usually paid when the deed is recorded. A transfer that is a gift or a transfer between certain family members may be exempt, but the exemption must be stated correctly.

The buyer or grantee must also file a Property Transfer Affidavit (Form 2766) with the assessor within 45 days. The affidavit tells the assessor the price and the date of transfer, which is how the county decides whether the taxable value uncaps. Missing it can create a penalty and a wrong tax bill.

A transfer between spouses or former spouses is one of the transfers that may be exempt from the uncapping of taxable value. The Property Transfer Affidavit has a place to claim the exemption, and the county may ask for the divorce judgment or a copy of the settlement. Claim it on time. A refund after the fact is harder than a correct filing at the start.

A transfer into a revocable living trust can also be exempt when the settlor keeps the same beneficial interest. The deed should name the trustee of the trust, and the assessor may ask for the trust's certification or the relevant pages. A quitclaim deed into a trust is common, but the title and the trust schedule have to agree.

Michigan's taxable value is capped while ownership stays the same and uncaps when the property transfers, unless an exemption applies. A transfer between spouses or former spouses, or certain transfers into a trust, may be exempt from the uncapping. The Property Transfer Affidavit is where the exemption is claimed.

A principal residence exemption lowers the school tax on a home the owner lives in. The new owner must qualify and file the exemption. If the property was a rental or a second home, the exemption may not carry over. Check with the local assessor before assuming the tax bill will stay the same.